Page 33 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 2.1 Rural Population

There are two sections of rural population:
 A large portion has a low income and low consumption levels;

 The rest are rural rich.
The rural population forms a major portion of the Indian population as seen below:

Figure 2.1: Division of Population in India

Urban Rural
26%
Urban

Rural
74%

About 75% of the Indian people reside in rural areas. In other words, for every consumer in the
urban area, there are three of them in the rural areas. Though the proportion of rural population
is showing a slight decrease over the years, but in absolute numbers, the rural population is
growing at a higher rate than the urban population. This large population will require a wide
range of consumable and durable goods and services. At the same time the need of the rural
areas does not automatically guarantee a market, unless it is backed by income and the resultant
purchasing power.
For a vast majority of the rural population, the main occupation is agriculture and allied activities.
The graph below gives the distribution of rural population as per their occupation pattern.

Figure 2.2: Occupation Pattern of Rural India

2% 2% Agriculture
9%
Agricultural Labour

10%
Business

50% Non-agricultural Labour

Salary Earners
27%
Notgainfully employed

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